Agreement for Payment In-Lieu of Taxes for Properties located at 3601, 3611, 3621, and 3631 S. Harbor Boulevard (APN: 414-261-07) Department(s): Planning and Building Agency Recommended Action: Authorize the City Manager, or designee, to execute the attached Payment In-Lieu of Taxes Agreement with SOCO Harbor, Inc. (Agreement No. 2026-XXX).

Summary

This item authorizes the City Manager to execute a Payment In-Lieu of Taxes (PILOT) Agreement with SOCO Harbor, Inc. for properties located at 3601, 3611, 3621, and 3631 S. Harbor Boulevard. The agreement is in conjunction with Cristo Rey Orange County High School establishing a professional school use in two of the four office buildings. As Cristo Rey is a nonprofit educational institution and thus tax-exempt, the PILOT agreement ensures the City does not lose property tax revenue. The agreement is for a term of 20 years, with annual payments starting from the school's certificate of occupancy. The initial payment in 2026 is estimated at $16,938, with a 2% annual increase. Over the 20-year term, the total estimated payments are approximately $412,000. This agreement aims to minimize fiscal impacts to the City and support City services.

Citizen Impact

This agreement ensures that the City of Santa Ana will continue to receive property tax-equivalent payments from the properties occupied by Cristo Rey High School, offsetting revenue loss due to the school's tax-exempt status. Residents will benefit from the continued funding of City services that these payments help support.

Confidence

high